AmTech Starts Rubicon Technology (RBCN) at Buy; $32 PT

May 9, 2008 11:23 AM EDT

American Research Technology initiates coverage on Rubicon Technology (Nasdaq: RBCN) with a Buy rating and $32 price target.

The firm said, "With high brightness LED adoption still in its infancy, burgeoning legislation on the verge of banning incandescents, increasing public awareness of "green" technologies, and Rubicon’s superior technology advantage, we urge investors to accumulate the stock for a multi-year secular trend." Specifically, AmTech believes that the LED industry could be one of the best growth markets over the next few years, and as Rubicon is the market share leader of sapphire wafers for LED usage, the firm feels Rubicon could be a solid play on overall LED adoption.

AmTech notes that Rubicon's visibility is "excellent": the company currently needs about $38 million over the remainder of 2008 to meet FY08 guidance and already has about $35 million recorded in its backlog.

Rubicon Technology, Inc. engages in developing, manufacturing, and selling monocrystalline sapphire and other innovative crystalline products for light-emitting diodes (LEDs), radio frequency integrated circuits (RFICs), blue laser diodes, optoelectronics, and other optical applications. [BCS]

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